Fuel Subsidy: What It Means For Nigerians

Fuel Subsidy In Nigeria 

The President of Nigeria, Bola Tinubu, has decided to execute his predecessor’s decision to eliminate fuel subsidy by June, although the Independent Petroleum Marketers Association of Nigeria has objected to this.

According to a report, Tinubu declared that his administration will stop providing subsidies for petroleum items.

He claimed that it was no longer justifiable to continue considering the significant opportunity cost the Federal Government was bearing to finance subsidies.

According to Tinubu, the subsidy was deleted from the budget as of June 2023 since there was no provision for it.

“On the economy, we target a higher GDP growth and to significantly reduce unemployment. We intend to accomplish this by taking the following steps: First, budgetary reform stimulating the economy without engendering inflation will be instituted.

Also Read Fuel Subsidy: How To Cope With Nigeria’s inflation

“Second, industrial policy will utilize the full range of fiscal measures to promote domestic manufacturing and lessen import dependency.

“Third, electricity will become more accessible and affordable to businesses and homes alike. Power generation should nearly double and transmission and distribution networks improved. We will encourage states to develop local sources as well.”

Tinubu stated that his administration would aim for a minimum yearly GDP growth of 6% on his economic agenda for the ensuing four years. In order to accomplish this, the new administration will implement fiscal and tax changes that will stimulate the economy and solve the many taxes that stifle foreign direct investment.

“The fuel subsidy is gone!” Tinubu exclaimed during his inaugural address at Eagle Square, Abuja, shortly after he was sworn-in as the 16th President of Nigeria.

The President said “Subsidy can no longer justify its ever-increasing costs in the wake of drying resources. We shall instead re-channel the funds into better investment in public infrastructure, education, health care and jobs that will materially improve the lives of millions.

“We commend the decision of the outgoing administration in phasing out the petrol subsidy regime which has increasingly favoured the rich more than the poor.”